21 July 2019

• INCHCAPE SELLS FOUR SITES TO GROUP 1
• PENDRAGON SELLS ANOTHER JLR
• AUTO TRADER TO REVISE PRICING BADGES
• FCA CALLS FOR RETAILER OPINIONS
• RETAILERS HOLD MORE USED STOCK
• FORD ORDERS FREE GEARBOX FIX
• STOCKWATCH – Gains for Inchcape and Lookers after earlier losses
• LAUNCH DIARY – Mazda3, MG ZS EV
• COMING UP – AGMs for Motorpoint, Vertu, Caffyns, Halfords, Auto Retail Live Q3 Briefing
• MONEY MATTERS – Banks strengthen Brexit early warning systems, more than 50,000 retail premises empty

Inchcape sells four sites to Group 1

Inchcape is continuing its “right sizing” plan for its network with the sale of four Volkswagen operations in Essex to US-owned Group 1 Automotive for an undisclosed sum.

Auto Retail Agenda revealed Inchcape’s plan for a near 20% reduction in the number of franchises it held earlier this month. Inchcape also confirmed it has sold two of its Audi franchises (Maidstone and East Kent) to Motorline and one (Crawley) to Harwoods, as previously reported.

The four VW sites are in Chelmsford, Colchester, Romford and Southend and will be operated by Group 1 under the Beadles brand. Beadles was bought by Group 1 in 2017.

Auto Retail Agenda understands Inchcape is also looking to dispose of three BMW and three Mini franchises, plus at least two other operations.

The sales take Inchcape from 103 to 96 franchise points while Group 1 moves from 61 to 65 franchise points, according to Auto Retail Network’s Who’s Where in Auto Retail report.

Group 1’s UK chief executive Darren Guiver told Auto Retail Agenda that details of the deal would be announced via the US stock market.

Pendragon sells another JLR

Family-run retailer Sinclair has bought the Stratstone Jaguar Land Rover business in Swansea from troubled Pendragon.

Pendragon, which has issued several profit warnings in the recent past and seen the departure of its new chief executive after just three months, has been looking to dispose of several sites both in the UK and US for the past two years.

The Swansea JLR purchase by Sinclair comes months after the privately-owned group bought the Likes Land Rover business in Hay-on-Wye. The 65 staff at Swansea are being retained.

Auto Trader to revise pricing badges

Auto Trader is considering revising its ‘good’, ‘great’ and ‘low’ pricing badges for used cars with the addition of an above-average pricing indicator to give greater consumer confidence.

Responding to a question from Auto Retail Agenda about the absence of an above average pricing badge, Auto Trader’s director of commercial products Karolina Edwards-Smajda said one was “not yet” available.

However, she explained that it wasn’t brought in at the start as the site wanted to make sure it “took retailers on a journey”.

She added: “It is all about the education on what consumers want and they absolutely expect to know this information and this is when they will have confidence to buy from this retailer knowing their car is priced fairly. If retailers are not comfortable with exposing this information, the consumer will have no trust in purchasing the vehicle.”

FCA calls for retailer opinions

Retailers are being asked for their views on a new data upload system due to replace the FCA’s current Gabriel platform. Dealers can provide their opinions through an FCA survey: https://bit.ly/2xTufQr

Retailers hold more used stock

Franchised retailers held more used stock in June than a year ago. Data from Motors.co.uk shows that on average retailers held 61 units, 2% up on 12 months ago. Stocking days remained unchanged at 42 but that was an improvement on the 45 in May.

WORLD NEWS

Ford orders free gearbox fix

Ford has told US dealers to repair 2011-2017 Fiesta and Focus models’ PowerShift transmissions for free after allegations it launched them despite knowing there might be a problem.

https://bit.ly/2y2n2xv

STOCKWATCH

Closing prices at 19 July and weekly movement

Gains for Inchcape and Lookers after earlier losses

Auto Trader Group 544.6p (-6.4p)

BCA 243.6p (+0.6p)

Cambria 57.5p (-1.5p)

Caffyns 410.0p (n/c)

Inchcape 602.0p (+8.5p)

Lookers 45.5p (+3.0p)

Marshall Motor Holdings 139.0p (-1.0p)

Motorpoint 218.0p (-1.0p)

Pendragon 14.0p (+0.2p)

Vertu 37.8p (+0.2p)

LAUNCH DIARY

Mazda3 hatchback and saloon with Skyactiv-X engines. From £23,555.

MG ZS EV. From £28,495 before government grant.

COMING UP

Tuesday: Motorpoint

Wednesday: Vertu AGM, new Prime Minister takes over

Thursday: Inchcape H1 results, Caffyns AGM

29: Consumer credit data

31: Halfords AGM

August 7: Auto Retail Live: Q3 Briefing. Sign-up here

MONEY MATTERS

Banks strengthen Brexit early warning systems

Corporate banks are refining their early warning systems to pinpoint any companies struggling to repay as industry prepares for a disorderly Brexit.

https://reut.rs/30IkzF6

 50,000-plus retail premises empty

More than 50,000 shops and retail premises lie empty according to local authority data. According to the ONS, there were 319,000 retail businesses in 2018 which means the void rate now stands at 16%.

https://bit.ly/30QDGwP

John Swift

Editor

Auto Retail Agenda

Tags: Auto Trader, Group 1, Inchcape, Motors.co.uk, Pendragon, Santander, Sinclair